Economy is on a roll

Hong Kong is one of the world's most business-friendly and successful cities. 

Hong Kong is small, with just 6.97m people, but it punches above its weight economically, a vibrant metropolis where the dynamism of the people and free-trade policies of successive governments make up for a lack of natural resources 

The Hong Kong economy is the envy of the world. The books show a surplus, growth is healthy, inflation low, the already-low unemployment level falling and the future forecast exceedingly optimistic. 

In fact the only potential threat to its domination as the most important financial and commercial centre outside Tokyo is the city of Shanghai; that competition is dismissed, or shrugged away, by anyone who has spent any length of time in the east-coast mainland port. 

Shanghai - as with many other would-be rivals - simply does not have the deep well of internationally-minded, English-speaking and hardworking people that Hong Kong boasts.  Hong Kong's expertise in the service industry - be it banking, insurance, or logistics _ is simply unmatched and, most would agree, becoming stronger all the time. 

Hong Kong is small, with just 6.97 million people, but it punches way above its weight economically, a vibrant metropolis where the dynamism of the people and free-trade policies of successive governments compensate for a lack of natural resources. It is engaged in constant process of re-reinvention and improvement, ensuring the economy continues to expand: official figures recorded growth of more than 7 per cent last year. 

The city regularly features at the top of any list of the world's most business-friendly cities. The Heritage Foundation, an influential American think-tank, has ranked it the world's freest economy for the last 12 consecutive years. The organisation measures how well 157 economies score on a list of 50 independent variables grouped into 10 broad factors of economic freedom. Hong Kong was ranked first in trade, monetary policy, foreign investment, banking and finance, property rights, and regulation. 

Hong Kong is consistently rated in surveys as the world's freest economy - red tape is minimal, tax is low and the flow of capital and currency is unrestricted. All these factors, along with an open government, clean civil service and impartial legal system have made it an enticing place for global companies to set up shop. 

At last count there were 1,100 international companies with regional headquarters in Hong Kong, taking advantage of the city's easy connections with other major Asian centres and, most importantly, fast-growing China. 

Hong Kong's easy access to the Middle Kingdom has long been its unique selling point, particularly during the past few decades, as the nation opened its doors to foreign investment. 

The tremendous surge in exports from China in recent years allowed Hong Kong to maintain its position as one of the world's busiest and most efficient container ports: there are now nine terminals in operation. 

It is no surprise to find that Hong Kong politicians are proud of these achievements - and are confident of a bright future.

"Hong Kong has   fully emerged from the Asian financial crisis and has regained its strength and vitality," says financial secretary Henry Tang.

"Our domestic economy has been moving forward with increased momentum, and we are better placed to ward off external shocks." 

Government policy, he says, is to focus on reinforcing Hong Kong's competitive advantages in its business environment, financial services, tourism and logistics and on nurturing and attracting the best talent.